Can Starbucks be a third place when its drive-through is so full?

Starbucks aspires to be a third place, a setting where people of different backgrounds can gather in between home and work. Coffee shops, and restaurants more broadly, can play this role as people need to eat and drink and such activity is often tied to social interaction.

In my morning commute, I pass a Starbucks in front of a strip mall and right next to a busy suburban road. The drive-through line is always very full. The size of the line is particularly noticeable in this location because once the Starbucks line has more than eight cars, it spills over into the roadway through the shopping center and can block traffic.

The inside of this location is attractive. A month ago, I spent a morning working there. The store had dark walls and what looked like a tin ceiling plus a variety of seating options (tables, upholstered chairs, work counters). A steady flow of people came in and out and there were at least a few others like me hunkered down for several hours doing work. From my working location inside, all morning I could see the steady flow of people going through the drive-through.

Can a coffee shop or any restaurant so dependent on drive-through traffic for business (think McDonald’s) truly be a gathering spot, a social space, a third place? Perhaps the issue is much bigger than Starbucks:

1. Businesses do need to make money. Starbucks has encountered this problem before with people and visitors who might restrict or limit sales. Not having a drive-through is a bold statement but might not be financially viable (or might not generate the kind of revenue Starbucks desires).

2. The suburbs require driving (and many Americans seem to like it this way). Starbucks locations in denser settings do not have drive-throughs and perhaps they can better function as third places.

3. American fast food combines the ability to drive and getting food quickly. Without a drive-through, Starbucks is both missing out on business and putting itself into a different category of place.

4. Americans in general may not like third places given their preferences for single-family homes and private dwellings alongside their devotion to work. Any business or restaurant trying to fight against this may not make much progress. Even if people come to Starbucks or similar locations, how many engage with the people around them as opposed to focusing on their own work or interacting with a companion who came with them or who met they there? Public spaces where people come together are rare.

Maybe Starbucks can only be a third place in a certain kind of location with denser populations and less reliance on cars. Or, perhaps Starbucks can never really be a third place in a society dominated by driving and quick food.

Starbucks as a symbol of wealth in a community

Starbucks is planning more stores in less wealthy neighborhoods:

Starbucks plans to open or remodel 85 stores by 2025 in rural and urban communities across the U.S. Each store will hire local staff, including construction crews and artists, and will have community event spaces. The company will also work with local United Way chapters to develop programs at each shop, such as youth job training classes and mentoring…

Starbucks opened its first community store in Ferguson, Missouri, in 2016, two years after the riots that broke out over the shooting of an unarmed black 18-year-old by a white police officer. It has added 13 more locations since then, including stores in Baltimore, Chicago, Dallas, New Orleans and Jonesboro, Georgia. Another one will open this spring in Prince George’s County, Maryland. Starbucks estimates the shops have created more than 300 jobs…

Kelly said the stores reflect Starbucks’ core belief in responsible capitalism. The coffee shops are profitable, he said, and have the same menu as regular Starbucks stores…

“I can’t think either of a retailer, especially one that has more of a discretionary, higher-end purchase, being willing to push into neighborhoods and markets that have less purchasing power,” Theodos said. “Starbucks usually appears when a neighborhood has the purchasing power to support it.”

For years, Starbucks has been a brand and presence that signals a wealthier location. With their prices, products, and aesthetics, communities had to have a certain level of resources for Starbucks to locate there. Once the money was there, Starbucks might arrive in droves. (I’m thinking of the number of Starbucks on Michigan Avenue in Chicago.) If payday loan stores and dollar stores help identify poorer locations, Starbucks may be the most common restaurant that signals the opposite.

I am curious about one item of information from the article. The Starbucks executive quoted in the story says the locations are profitable. Does this mean Starbucks avoided these locations for so long even though they could have made money or did something change in the cost equation over time? Some firms would want to expand everywhere to bring in money though others might want to protect their status.

Claim: “The physical environment feels depressingly finished”

As Derek Thompson of The Atlantic considers innovation and Silicon Valley, he includes this paragraph regarding innovation in the physical and urban realm:

And if you look up from your smartphone, progress becomes harder to see. The physical world of the city—the glow of electric-powered lights, the rumble of automobiles, the roar of airplanes overhead and subways below—is a product of late-19th-century and early-20th-century invention. The physical environment feels depressingly finished. The bulk of innovation has been shunted into the invisible realm of bytes and code.

There are several pieces that can be pulled out of this an examined:

1. Has innovation in cities and urban areas slowed? Many of the major changes may have already happened – think the modern skyscraper, the car and all the roads to go with them – but I’m guessing there are some lesser-known changes in the last few decades that have made a major difference. (For better or worst, one would be the global shift toward and innovations in capitalism, neoliberalism, and the finance industry that has had large effects on numerous cities and neighborhoods.)

2. If “the physical environment feels depressingly finished,” does this mean a change in aesthetics or style could alter this? Science-fiction films and shows tend to depict cities as white, gleaming, and move curved than they are today. Think Her which merges city life and technological change. Or, find images of cities from researchers, activists, and architects who imagine much greener cities full of plants and life rather than hard surfaces and cars. Perhaps the problem is not innovation as it is described in this article; one issue is that the look of big cities has not changed much in the fifty years or so (even as some individual buildings or projects might stand out).

3. If the look and feel of cities has not changed as much recently, could “the invisible realm of bytes and code” bring significant changes to the physical environment in the next few decades? In contrast to #2, perhaps future innovation in spaces will be less about collective experiences and aesthetics and more about changed private experiences. Imagine Virtual Reality in cities that allows pedestrians to see or overlay different information over their immediate surroundings. Or, easier access to Big Data in urban settings that will help individuals/consumers make choices.

Yea! The Internet enables American workers to work more

A working paper links the number of hours American white-collar employees put in and the Internet:

In a new working paper, the economists Edward E. Leamer, of UCLA, and J. Rodrigo Fuentes, of Pontificia Universidad Católica de Chile, studied data about working hours from the American Community Survey. They found that hours worked since 1980 increased nearly 10 percent for Americans with bachelor’s and advanced degrees. Leamer told me that he believes this is because computing has shifted much of the economy from manufacturing to neurofacturing, Leamer’s term for intellectually intensive white-collar labor that is often connected to the internet, such as software programming, marketing, advertising, consulting, and publishing.

Neurofacturing jobs lend themselves to long hours for several reasons, Leamer said. They’re less physically arduous, as it’s easier to sit and type than to assemble engine parts. What’s more, the internet makes every hour of the day a potential working hour…

As Leamer and Fuentes write in the paper, “The innovations in personal computing and internet-based communications have allowed individual workers the freedom to choose weekly work hours well in excess of the usual 40.”

The internet has also supercharged global competition and forced international firms to outwork rivals many thousands of miles away. This has created a winner-take-all dynamic that’s trickled down to the workforce. In their 2006 study, “Why High Earners Work Longer Hours,” the economists Peter Kuhn and Fernando Lozano found that the premium paid for longer workweeks has increased since 1980 for educated workers, but not for less educated workers. Their theory is that at the most competitive firms, ambitious workers putting in super-long hours are sending a clear message to the boss: Promote me! And the boss isn’t just getting the message; he’s actively soliciting it. At many firms, insanely long hours are the skeleton key to the C-suite and the partner track. Thus, overwork becomes a kind of arms race among similarly talented workers, exacerbated by the ability to never stop working, even at home. It’s mutually assured exhaustion.

“Mutually assured exhaustion” is the result of zealous workers, managers asking more of employees, or the product of a unique work ethic in the United States?

This could lead to a basic question that I ask myself from time to time: has the Internet made life better? Is humanity thriving more, feeling better, doing more good, and experiencing a better life because of the Internet? The personal comparison is harder in that I was much younger when the Internet was not available but I can still imagine the comparisons. How might my academic work be different? My family life? My leisure time? And so on.

Additionally, the study also seems ripe for a comparison to other countries around the world that also have the Internet. Is the Internet the driver here or a tool that the American economic and social system utilizes to push a particular kind of work and approach to life? The Internet is not all powerful and cultural and social decisions in other societies seem to provide room for pushing against the possibility of working all day that the Internet allows.

The expansion of warehouses in sprawling locations

While the example here is from Georgia, this describes a lot of development in the United States today:

An announcement this week says that the Goodyear Tire and Rubber Company will anchor a new industrial park being developed on the property. The company will occupy 1.5 million square feet of warehouse space, in what the Atlanta Business Chronicle calls the “largest build-to-suit industrial space under construction in metro Atlanta.” Goodyear is expected to employ about 150 Georgians in the facility.

Individually, headlines like this represent wins. Jobs are created, and local tax bases are fortified. Warehouses, in particular, tend to bring in significantly more in property taxes than the businesses that occupy them demand in county services such as public safety. Their byproduct, however, is traffic. Specifically, truck traffic…

The middle stage of both manufacturing and distribution requires warehouses, and Georgia’s geographic position and our ports and airport logistics hubs make the warehousing industry a logical fit for the state. This extends from the Port of Savannah all the way down I-16, up I-75 into metro Atlanta, and all the way around the metro area and into North Georgia. It’s truly a statewide issue.

And much like the projected cascade of new residents, new warehouses are coming. There is a proposal to build out 1,400 acres with 18 million square feet of warehouse space in Butts county, about half way between Atlanta and Macon. Seven hundred acres adjacent to the Budweiser brewery in Cartersville, northwest of Atlanta, have also been sold to be developed as warehouse space.

To make a world of Amazons, Walmarts, and Walgreens possible, trucks are needed. Lots of trucks. The warehouses need to be in strategic locations near growing populations so that the time between warehouse and store or delivery is reduced. To make one or two day delivery possible or have real-time inventory, there need to be locations that have a lot of goods ready to go. Black Friday or the Christmas retail season cannot happen as easily without warehouses.

As noted above, warehouses provide jobs and property taxes. They are not often aesthetically pleasing as the primary goal is to store goods, not interact with the public. They often occupy key sites in and around intersections and highways. They contribute truck traffic. I would guess few people would want to live right next to one given the noise and lights involved.

All of this connects to sprawling development in the United States. American communities tend to be spread out as people seek out single-family homes of a certain size and with enough distance from communities they might find problematic. Decades of sprawl fueled by the American Dream, the federal government, and numerous other actors means that warehouses are a common part of the landscape. Outside any major metropolitan area, there are rows upon rows of warehouses.

For another example of how this all plays out, see the rise of intermodal facilities (and the negative effects these can have on communities).

Reminder: only 17% of the jobs in the Chicago region are downtown

An article I posted about earlier in the week included this statistic:

Downtown Chicago accounts for 17% of jobs in the six-county region, according to the Illinois Department of Employment Security…

But most of the region’s jobs — almost 3 million — are outside of downtown and may require more complicated commutes. More than 400,000 people commute every day from Chicago to jobs in the suburbs, according to the Regional Transportation Authority

This 17% is still a sizable percentage of jobs within the region. Put those jobs together with other economic resources, cultural opportunities, political resources, and historical inertia and the Loop is still a center of the region.

But, this also suggests 83% of the jobs in the region are outside Chicago’s downtown. Many Chicagoland residents do not need to go near downtown for work. Many commutes are suburb to suburb. As the second paragraph above notes, even hundreds of thousands of Chicago residents travel from the center to the suburbs for work.

At the least, such numbers should help us reconceptualize cities, suburbs, and regions. The varied pieces within a region are interdependent. Problems need to be solved across communities and taxing bodies. Celebrations take place across the region. The problems of either cities or suburbs are not only theirs to address. The communities are competing against other regions more than each other.

Open office arrangements may not work for getting work done

An evaluation of the implosion of The We Company highlights the importance of physical space for accomplishing tasks in the workplace:

Much will be written in the coming weeks about how WeWork failed investors and employees. But I want to spotlight another constituency. WeWork’s fundamental business idea — to cram as many people as possible into swank, high-dollar office space, and then shower them with snacks and foosball-type perks so they overlook the distraction-carnival of their desks — fails office workers, too.

The model fails you even if you don’t work at a WeWork, because WeWork’s underlying idea has been an inspiration for a range of workplaces, possibly even your own. As urban rents crept up and the economy reached full employment over the last decade, American offices got more and more stuffed. On average, workers now get about 194 square feet of office space per person, down about 8 percent since 2009, according to a report by the real estate firm Cushman & Wakefield. WeWork has been accelerating the trend. At its newest offices, the company can more than double the density of most other offices, giving each worker less than 50 square feet of space

But after chatting with colleagues, I realized it’s not just me, and not just the Times: Modern offices aren’t designed for deep work…

The scourge of open offices is not a new subject for ranting. Open offices were sold to workers as a boon to collaboration — liberated from barriers, stuffed in like sardines, people would chat more and, supposedly, come up with lots of brilliant new ideas. Yet study after study has shown open offices to foster seclusion more than innovation; in order to combat noise, the loss of privacy and the sense of being watched, people in an open office put on headphones, talk less, and feel terrible.

This moment might just a tipping point in the evolution of office space. Cubed suggests office layouts do change over time. What seems to be next is a mixing of older models and the open model: different spaces that range from very private (think soundproof booths or offices away from activity, sound, and eyes) to very open (think couches and play areas for activity). How exactly the imperative to save money or be efficient remains to be seen.

Hinted at in this opinion piece is another interesting idea: could truly private spaces only be available to certain classes of workers or certain people? The office has long been symbol of more power and/or responsibility. Imagine a workforce or a public where the majority of people operate in common spaces that are semi-private, with privacy usually obtained though the actions of individuals (headphones, focus on screens, etc.). In contrast, those with power and resources have access to distraction-free spaces.

Another big issue could be this: how much work these days is truly distraction-free and are we moving toward less deep work? Again, this might different by field or role. But, the rise of smartphones and the Internet means people are highly distractable from work, even in very private settings. American adults on average are consuming 11 hours of media a day, some of this which must happen at work for many.